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VOL 2, ISSUE 4
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Bimonthly Newsletter from VM Pensions Management
Your Kids are not a Pension Plan
REMEMBER TO BREATHE: TIPS ON HOW TO PRESERVE YOUR MENTAL HEALTH
HOW TO COPE WITH QUARANTINE
AUGUST 2021
Your Kids are not a Pension Plan
Maintaining your financial independence after retirement
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or anyone secretly or not-so-secretly planning to rely on their children in their retirement years, placing an unexpected burden on your loved ones is exactly the opposite of good retirement planning. Instead of enjoying the freedom that comes from a reliable fixed income source, your lifestyle will be constrained by the budget your offspring can afford. You might also be imposing yourself on a person with their own family to consider and their own plan for retirement that didn’t take you into account. Whatever your ideas about what your kids owe you for all you’ve done for them, we’re guessing you don’t want to cause them to struggle financially on your behalf. The time-honoured instructions heard on passenger planes before take-off is a great metaphor for the right way to approach your personal finances. Make sure to put on your own oxygen mask before helping others with theirs. The principle behind this approach is that, although you value the wellbeing of your loved ones, you need to make sure your finances are taken care of so you will have the resources to take care of the people who matter to you. That being said, time is your greatest ally on your journey to financial independence. Inflation can eat at the power of your portfolio if you’re not prepared for it. Given time, compound interest can be a powerful weapon against the negative effects of inflation on your nest egg. The earlier you get going, the less money you’ll need to hit the goals you have for post-work years. So, start as soon as you can; you’ll want to give your money as much time to grow as possible. If you’re part of a group pension plan, it’s a good idea to maximize your contributions. You can invest up to 20% of your income tax-free. If you get a raise, remember to adjust your contributions accordingly. If you’re not in a group plan, an
Approved Retirement Scheme (ARS) is the way to reach your retirement goals. The same tax-free maximum applies, and some ARS providers, like VM Pensions Management, provide portfolio options to suit a range of risk appetites. The earlier you start, the more aggressive you can afford to be with your investment. Markets, by nature, are unpredictable, but an early start can allow you to increase your earning potential while giving you time to recover from any short- and medium-term negative changes in the markets. Most ARS schemes have diversification built in. Pension portfolios are professionally managed and consist of a range of assets, so you get the reliability of professional portfolio management as well as the protective benefits of having all your eggs in different baskets. It’s ok in retirement to have your kids step in to assist from time to time. Surprises can happen at any time, even with the best of financial plans, and relying on your children occasionally is not uncommon. But the stability and assurance you get from achieving a level of financial independence will give you peaceof-mind as well as the freedom to chart your own course. Based on the lifestyle you envision for yourself, your advisor can help you choose the right ARS plan, taking external factors like inflation and market projections into account. You might also consider supplemental investments to add to your retirement portfolio. The important thing is to come up with a plan and get it in motion as early as possible. Investing in your retirement is about more than ensuring you’re going to be ok once you stop getting a paycheque. It’s about creating the future you want for yourself. It’s about writing the next chapter of your life, using your goals and your finances as paper and pen. It’s about the life you want for your future self. Don’t just retire, thrive!
begins by closing your eyes and sitting in a comfortable position in a quiet place. No phone, no emails, no text messages, no alerts. Take a few moments to focus on being present. Relax your body and your mind. Next, take a deep breath through your nostrils using your diaphragm. If you’re doing it right, your belly should expand first, then your chest as your lungs fill with air from the bottom up. Once your lungs are full, release the breath through your nose slowly. Contract your abdominal muscles to gently push all the air is out of your lungs. Repeat this deep breathing at least 3 times. You can do it for a preset amount of time (eg. One, five or ten minutes) or number of breaths, depending on how much time you have and what works best for you.
As we all look for ways to make our indoor time do more for us, deep breathing is an antidote for the daily stresses that come with the merger of work and family life. As we juggle densely packed calendars, it helps provide balance and boosts our mental and physical health. And in times of peace. So, keep deep breathing in your personal health toolkit, it’s easy, portable and effective.
BR EA TH IN G
uncertainty and chaos, it is an oasis of
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D EE P
bo one pr Lo dy o e . H f th ef ss wer er e fe ur s e be c e h ar s m ts o ■ ea e tt or f Re rt a hin e co d ra fe g po res rtis uce te w s ■ i of yo ss lie ol s ib nt ■ str Re th u c ilit ■ M e du e s y be an a of Re ke s a ces ne do d s n bu u d blo fit fo m c s: r rn e u ot o yo ou s t sc he d ur t he les r
Sure, we’re breathing all the time, but deep breathing is a little different. One way to do it
to make it calming, comfortable and energizing for you.
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The benefits of deep breathing have been well documented. It’s good for your body and even better for your mind. The act of breathing deeply and rhythmically has been practiced as meditation in Eastern cultures for many centuries. It is associated with the more contemporary practice of mindfulness. It’s even made it’s way into common language. When we take a restorative break from an activity, we take a ‘breather’.
around me.” Feel free to add elements to your routine
BE N ee p EF br ea m th IT in in d S an g is
Eighteen months into the global pandemic, Jamaica is going through the worst wave of it yet. So, just when things seemed to be opening up, we have to get reacquainted with doing work, school and play at home. One way to deal with the inevitable stress that comes with all that is good for both mind and body. It is easy to do, almost anywhere and at any time. It’s free and all it takes is a few minutes of your time. In case the title didn’t give it away, breathing is the answer - specifically, deep breathing exercises.
focus on a mental image or positive thought, like “love
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Tips on How to Preserve Your Mental Health
exercises, others prefer silence, choosing instead to
TH E
Remember to Breathe
Some people play calming music while doing these
MEET THE TEAM
Conroy Rose CHIEF EXECUTIVE OFFICER
Conroy Rose was appointed CEO of VM Pensions Management Ltd in January 2019. Prior to his appointment, he held the post of Assistant Vice President – Sales and Service at the Victoria Mutual Building Society. A Certified Securities Dealer Representative in Jamaica and Canada, Conroy holds a Master of Business Administration (MBA) degree in Banking and Finance and a BSc. (Hons.) in International Relations and Economics, both from the University of the West Indies. A strong team leader, Conroy has over 15 years of experience in the finance industry spanning Customer Service, Investment Analysis, Portfolio Planning and Business Plan Development and Execution. He boasts an excellent track record in managing investment portfolios of both high net worth and middle to low net worth clients.
H E A LT H & W E L L N E S S
How to Cope with Quarantine
INTRODUCING DEBUNKED!
Quarantining yourself at home can play an important role in preventing the spread of infectious diseases. But this doesn’t mean that coping with the disruption in your normal routine is easy. Taking care of your mental health is essential, even if your time in quarantine is relatively brief in the grand scheme of things. The coronavirus (COVID-19) outbreak has led people to engage in social distancing as a critical way to help “flatten the curve,” or contain the spread of the illness to help keep infection rates as low as possible. Quarantine is recommended in cases where a person has been exposed or potentially exposed to others with coronavirus (COVID-19). Read the full article here: https://www.verywellmind.com/ protect-your-mental-health-duringquarantine-4799766
VM Pensions Management Ltd 73-75 Half Way Tree Road Kingston 10, Jamaica
Check out our new online series Debunked! Watch our host RushCam hit the streets to get persons’ opinions on common myths around pensions and retirement planning, then sit with our resident Debunker Kandice Stewart who debunks those myths and replace them with facts! Click here to watch!
TERMS YOU SHOULD KNOW PENSIONABLE SERVICE Pensionable service is the amount of time a worker enrolled in a pension plan accrues toward that plan during their employment. Typically reported on statements as a yearly figure, pensionable service is one of the primary factors in determining a worker’s pension benefits, along with the highest average salary.
Tel: 876-754-7265 Fax: 876-754-8359 Email: pensions.info@myvmgroup.com